Global crude oil prices retreated on Monday as signs of a breakthrough in negotiations between the United States and Iran emerged. Mediators suggested that a roadmap for a final deal is being established, which could facilitate the reopening of the Strait of Hormuz to shipping traffic. Deutsche Bank analyst Jim Reid noted that these constructive developments are contributing to market stability.
Meanwhile, in the United Kingdom, the British pound and the London stock market showed resilience following Prime Minister Keir Starmer’s announcement that he will step down. While Starmer remains in office until a successor is chosen later this year, the prospect of a potential shift in fiscal policy under a new Labour leader—possibly Andy Burnham—has caused some anxiety among investors regarding national debt and public spending.
Market participants are closely watching who might replace current Chancellor Rachel Reeves, as any significant change in fiscal strategy could impact the performance of UK assets. In the broader financial landscape, stock markets saw mixed results, with gains in Tokyo and Shanghai contrasting with declines in Hong Kong and several European markets. Brent Crude dropped 1.6 percent to $79.28 per barrel, while West Texas Intermediate fell 0.7 percent to $75.35.